Nvidia Announces Restart of Sales for Key AI Chip to China, Lifting U.S. Restrictions
Nvidia Corporation, a leading American semiconductor company (NASDAQ: NVDA), has announced its intention to resume sales of an advanced artificial intelligence (AI) chip to China, following a meeting between the company’s CEO, Jensen Huang, and President Donald Trump at the White House.
In a statement on Monday, Nvidia revealed that it had submitted an application for export licenses to supply the MI308 chip to China, and anticipates resuming shipments as these are approved. The company commended the progress made by the Trump Administration in advancing trade negotiations and its commitment to US leadership in AI technology.
Similarly, Advanced Micro Devices (AMD) has also indicated plans to restart sales of its AI chips to China. In a statement to CNN, AMD stated that it had been informed by the Department of Commerce that license applications for exporting MI308 products to China would be reviewed.
The resumption of Nvidia’s AI chip sales to China is reportedly part of the broader US-China trade agreement regarding rare earth elements, as disclosed by Commerce Secretary Howard Lutnick in an interview with Reuters. Treasury Secretary Scott Bessent earlier revealed that Nvidia export controls had been a “negotiating chip” in the larger US-China trade talks.
The renewed sales are significant given China’s historic control over rare earth exports, which became a major point of contention during recent trade negotiations between Beijing and Washington. In exchange for increased shipments of these critical resources, the US agreed to lift export curbs on microchip designing software, ethane, and jet engines.
Nvidia, the world’s most valuable company, derives a significant portion of its revenue from AI technologies. Its chips are utilized in a variety of applications, including AI chatbots, robotics, and self-driving cars. In 2024, China accounted for approximately 13% of Nvidia’s sales.
Last year, Nvidia released the H20 chip as a means to maintain access to the Chinese market amid strict US export controls. However, in April, the White House required Nvidia to obtain a special license for H20 exports to China, resulting in a halt of sales. The H20 is believed to have contributed to DeepSeek, an advanced Chinese AI model.
On Monday, Nvidia confirmed that it had applied for licenses to sell the H20 chip in China once again and expects approval, allowing for prompt deliveries. The company has expressed concerns about restrictions on selling to China as it may facilitate the development of comparable technology by Chinese companies, potentially undermining US leadership in AI.
Nvidia’s CEO, Jensen Huang, is scheduled to hold a media briefing in Beijing on Wednesday during his visit for a supply chain expo, his second trip to China following an April visit where he emphasized the importance of the Chinese market.
